There is great news for India’s start-ups
The Narendra Modi led government made the path easier for India’s start-ups. The government has simplified the process wherein start-ups seek exemption from ‘angel tax’ a great deal simpler. This has been achieved eliminating the need for certification from an inter-ministerial body when applying for tax exemption.
The applications for the tax exemption are now being directed to the department of industrial policy and promotion (DIPP) and processed the Central Board of Direct Taxes (CBDT). All of this is being done within forty-five days.
A DIPP official gave the following very assuring statement, “No committee, no certificate of valuation needed. All previous and future investments are covered. Start-ups incorporated before April 2016 are also covered,”
What led to this step?
Several of India’s start-ups had often complained that the government’s taxation body had been bullying them. The Commerce Minister of India took immediate action over this and brought it up with the Finance Minister Arun Jaitley. The government took further action and an expert panel was set up. This panel consisted of experts from IITs and IIMs who were brought together to look into the matter.
The government has now taken a brilliant step. All of the India’s start-ups recognized under the Start-up India initiative of the government will be granted tax exemption. Earlier, the much sought after tax exemptions were granted only to certain riders. These riders constituted only a small part of what is known as the investment ecosystem.
What do the start-ups have to do now?
India’s start-ups will now benefit a great deal if they follow certain advisories such as the one given Mr Amit Maheshwari, “The start-ups are advised to get themselves registered with DIPP vide ministry of commerce and industry notification dated April 11 to avoid scrutiny from the tax department and ministry of corporate affairs in the light of the recent notices sent MCA as well,”
With this single step, the government has created an India that is the most friendly place start-ups in its entire existence as a country throughout history.
•Writer•Coffeeholic•Pianist•Athlete•Genius
